Gastrointestinal (GI) ulceration and hemorrhage is a major health problem in our country representing billions of dollars in health care costs and lost revenues from work place. Despite sophisticated therapeutic agents, the disturbing problem of high recurrence rate of bleeding, even after complete healing, remains. About one third of the patients treated with traditional ulcer therapy have recurrent hemorrhage. There is a need for developing new drugs that can arrest hemorrhage. In our pilot work we have shown that the organic extract of Chinese herbal preparation, Yunnan baiyao, has favorable influence on severe intestinal syndromes produced by indomethacin, and is also effective in promoting the healing and preventing GI ulcers in rat models. We have also shown that the extract contains at least two potent factors that induce aggregation of human platelets. We propose in this SBIR application to optimize methods for extraction as well as establish the molecular identity and mode of action of active principles that exhibit platelet aggregatory activities. We plan to carry out biological assays specific for anti-ulcerative and anti-hemorrhagic properties. The Phase I study will lay the foundation essential for the full development of the active factors into anti-hemorrhagic drug in Phase II studies. PROPOSED COMMERCIAL APPLICATION: The market for an effective and safe therapeutic agent to treat several types of hemorrhagic disorder notably bleeding from esophageal varices, gastric and duodenal ulcers will be enormous.